Washington D.C., July 29, 2025: Former U.S. President Donald Trump has announced a 25% tariff on imports from India, effective August 1, citing India’s continued purchase of arms and oil from Russia. The move marks Trump’s second statement on India’s trade practices within 24 hours.
Taking to social media on Thursday, Trump said, “India is our friend, but in recent years, trade has declined due to high tariffs imposed by India on American products. The U.S. can no longer ignore India’s trade policies that disadvantage American companies.”
Trump also criticized India for relying heavily on Russian defense imports and continuing to purchase Russian oil and gas actions that he claims undermine global efforts to pressure Russia over the Ukraine conflict.
Penalty Measures and Tariffs to Take Effect August 1
Due to these concerns, the U.S. will impose a 25% tariff on Indian goods beginning August 1. Additional penalties may also be introduced, Trump warned, signaling a further deterioration in U.S.-India trade relations.
This announcement comes in contrast to Trump’s earlier statement on July 17, in which he claimed that American products would soon enter Indian markets tariff-free, similar to the zero-tariff agreement with Indonesia.
Indo-U.S. Trade Talks Ongoing Amid Tariff Tensions
A U.S. trade delegation is scheduled to visit India on August 25 for the sixth round of bilateral trade agreement (BTA) talks. Both nations aim to finalize the first phase of a trade agreement by September or October, including discussions on an interim deal.
During the last round of negotiations in Washington, Indian lead negotiator Rajesh Agrawal met with U.S. Trade Representative Brendan Lynch to iron out key differences.
According to Bloomberg, India is advocating for import tariffs to be kept below 10%, while the U.S. seeks market access and regulatory relief for its products. However, India remains firm on not opening its agriculture and dairy sectors to foreign players, though it is open to compromises in non-agricultural sectors.
India has also expressed willingness to lower duties on U.S. industrial goods and has indicated a potential increase in aircraft purchases from Boeing.
Deadline Pressure: U.S. Threatens Higher Tariffs if No Deal by August 1
Sources indicate that failure to reach a trade agreement by August 1 could result in the U.S. imposing an additional 16% tax on Indian goods on top of the existing 10% baseline tariff. Such a move would significantly impact Indian exports to the American market.
Despite the deadline pressure, Indian Commerce Minister Piyush Goyal has clarified that “India will not sign any agreement unless it is fully in the national interest and thoroughly evaluated. We will not compromise due to deadlines.”
